Director of Solutions
As Director of Solutions for Clearwater Prism, Dillon is responsible for assisting companies in defining and implementing Target Operating Models for investment reporting processes. Since joining Clearwater Analytics in 2013, Dillon has served in roles across client services, sales, and product, giving him a deep understanding of client needs. Based in Boise, Idaho, Dillon earned a BBA in finance from Boise State University.
The need to adapt to an everchanging market has many asset managers making a shift to more modern data management and asset management reporting systems. Here are six technological use cases for asset managers to consider.
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1. Asset managers are automating processes
People who work in data know that moving forward, time-consuming data aggregation and reconciliation processes will be automated. With AI and machine learning, the technology we have now is far beyond anything that was available even a few years ago.
We are seeing asset managers shift to digital solutions to aggregate, reconcile, and report on their data. They are finding that rather than managing these processes in-house, it is more efficient to partner with a cloud-based technology company to do the heavy lifting for them.
2. Asset managers are becoming more efficient with cloud technology
Businesses need scalable systems to report on multiple asset classes across multiple currencies, and they need to be able to pull data from many diverse sources.
With modern software solutions, you can easily integrate all the data you need from any data source. Transitioning to modern software can massively reduce the manual labor required to manage large data sets.
It is incredibly valuable to automatically receive accurate, timely data. Portfolio managers and client service team members are adapting cloud-based data solutions so they can focus on using data as a catalyst for innovative business strategies instead of spending all their time manipulating, reconciling, and normalizing data.
3. Asset managers are scaling their businesses efficiently while maintaining superior customer experience
It might seem like you need to choose between running a lean, efficient team, or providing great customer service. But the truth is, modern technology allows you to achieve both those goals at the same time.
In the past, it was common to provide white-glove services to only a small group of your top clients. For the largest 10% of your clients, you would go out of your way to ensure client satisfaction.
By taking advantage of automation, machine learning, and customization, you are now able to provide that white-glove service to your entire client base, not just the largest 10%. You can configure the system so every client, no matter their size, can feel like they are receiving white-glove service.
Modern technologies are allowing asset managers to find more ways to spend time with their clients and discover how to service them better. Making the switch from legacy systems to cloud-based software is setting up asset managers to delight their clients for many years to come.
4. Asset managers are sunsetting outdated legacy systems
Many legacy reporting systems have taken a homegrown, stopgap approach to developing reports. There are many inefficient, manual workarounds that are still used today even though they are time-consuming and error prone.
Additionally, the demand for access to data has changed over time. 10 years ago, many clients were still receiving mailed reports. Now, access to data on-demand is standard.
Managers using stopgap solutions to generate a PDF are seeing an increasing burden to meet their clients’ requests. For example, clients might ask a manager to give them access to data for all trades sent each day. This request, while becoming increasingly common, requires a gargantuan effort from the manager.
The costs of managing a system on-premises tend to pull resources from business budgets that are already stretched thin. It is costly to manage data systems in-house, and if anything goes wrong, then it is the responsibility of the business to fix it.
While the legacy systems might have worked in the past, they are now proving themselves costly and incapable of keeping up with increasingly complex business needs. Implementing modern technology can reduce spending and free up resources that can be reallocated to client services and other areas necessary to grow the business.
5. Technology is helping asset managers handle market changes
Asset managers are facing significant external challenges, and these problems multiply when combined with shrinking budgets, complex technology stacks, and inefficient business practices.
It is clear, however, that the future of data and reporting is going to revolve around providing information in a consumable and efficient way. Harnessing a third-party cloud solution will be essential to enable managers to continue to grow lucratively while helping their clients do the same.
Clients want instant access to their data, and it is essential for asset managers to find a solution that can deliver up-to-date, accurate, and easily readable information. Asset managers need a solution that can effectively house and deliver information to each client in the manner that works best for them.
6. Technology is enabling leaders across teams
Automatic access to high-quality, timely data makes life easier for everyone. Data teams have more time to analyze trends and complete necessary reports, leaders can access the data they need for board meetings at the push of a button, and account managers have access to a range of added resources to delight clients.
Leaders who focus on modernizing reporting processes will enable their business to grow quickly and efficiently while maintaining a high-touch customer experience. Firms that can successfully navigate the transition to cloud-based technology will be able to accelerate their success in operations and accounting.
Clearwater Analytics is the industry-leading software-as-a-service (SaaS) solution for investment accounting and reporting. Over 1,100 clients, including pension plans, governments, global insurers, asset managers, and corporations use Clearwater to automate data collection, reconciliation, compliance, risk, and performance reporting across $6.4 trillion in assets under management (AUM).
Clearwater works with leading asset managers worldwide and is the industry standard for investment accounting, reporting, and analytics. Talk to an expert today to learn how your organization can benefit from the Clearwater solution.